This Information Relates to Sherper Co

question 201

Essay

This information relates to Sherper Co.
1. On April 5 purchased merchandise from Newport Company for $22,000, terms 2/10, n/10.
2. On April 6 paid freight costs of $900 on merchandise purchased from Newport.
3. On April 7 purchased equipment on account for $26,000.
4. On April 8 returned some of April 5 merchandise to Newport Company which cost $2,000.
5. On April 15 paid the amount due to Newport Company in full.
Instructions
(a) Prepare the journal entries to record the transactions listed above on the books of Sherper Co. Sherper Co. uses a perpetual inventory system.
(b) Assume that Sherper Co. paid the balance due to Newport Company on May 4 instead of April 15. Prepare the journal entry to record this payment.

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Definitions:

Input Demand Curves

Graphical representations that show the quantity of inputs a firm demands at different input prices.

Rent

Payment, typically made monthly, for the use of land, a building, an apartment, an office, or other property.

Potential Users

Individuals or entities that could use or benefit from a product or service but have not yet done so.

Optimal Combination

The best mix of different factors or elements (such as resources or inputs) to achieve a desired outcome or objective.